Paycom Software (NYSE:PAYC) Stock Price Down 5.7% on Analyst Downgrade

Paycom Software, Inc. (NYSE:PAYC) shares traded down 5.7% on Monday after UBS Group lowered their price target on the stock from $245.00 to $210.00. UBS Group currently has a buy rating on the stock. Paycom Software traded as low as $146.52 and last traded at $143.6350. 126,806 shares traded hands during trading, a decline of 83% from the average session volume of 757,123 shares. The stock had previously closed at $152.29.

Several other research analysts have also recently weighed in on the company. Mizuho lowered their target price on Paycom Software from $220.00 to $180.00 and set a “neutral” rating on the stock in a report on Thursday, November 6th. BTIG Research initiated coverage on Paycom Software in a research report on Wednesday, December 17th. They set a “buy” rating and a $195.00 price objective on the stock. Citigroup lowered their price objective on Paycom Software from $191.00 to $185.00 and set a “neutral” rating on the stock in a research note on Tuesday, December 23rd. BMO Capital Markets restated a “market perform” rating and issued a $175.00 target price on shares of Paycom Software in a report on Friday, January 16th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Paycom Software in a research note on Monday, December 29th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $209.64.

Insider Transactions at Paycom Software

In other Paycom Software news, CFO Robert D. Foster sold 1,300 shares of the firm’s stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $162.66, for a total transaction of $211,458.00. Following the completion of the sale, the chief financial officer owned 14,747 shares of the company’s stock, valued at $2,398,747.02. This trade represents a 8.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 10.90% of the stock is currently owned by company insiders.

Institutional Trading of Paycom Software

A number of hedge funds and other institutional investors have recently modified their holdings of PAYC. Allianz Asset Management GmbH raised its holdings in Paycom Software by 10,106.6% in the 3rd quarter. Allianz Asset Management GmbH now owns 486,957 shares of the software maker’s stock valued at $101,355,000 after buying an additional 482,186 shares during the period. Two Sigma Investments LP increased its position in shares of Paycom Software by 228.7% during the third quarter. Two Sigma Investments LP now owns 532,124 shares of the software maker’s stock valued at $110,756,000 after acquiring an additional 370,219 shares during the last quarter. Woodline Partners LP purchased a new stake in shares of Paycom Software in the 3rd quarter valued at approximately $58,452,000. Robeco Institutional Asset Management B.V. raised its stake in shares of Paycom Software by 230.9% in the 4th quarter. Robeco Institutional Asset Management B.V. now owns 341,286 shares of the software maker’s stock valued at $54,387,000 after acquiring an additional 238,155 shares during the period. Finally, Jennison Associates LLC acquired a new position in shares of Paycom Software in the 2nd quarter worth approximately $49,853,000. 87.77% of the stock is owned by institutional investors and hedge funds.

Paycom Software Stock Performance

The stock has a market cap of $8.32 billion, a PE ratio of 18.38, a PEG ratio of 1.56 and a beta of 0.82. The stock’s 50-day moving average is $159.25 and its two-hundred day moving average is $193.27.

Paycom Software (NYSE:PAYC) last announced its earnings results on Wednesday, November 5th. The software maker reported $1.94 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.96 by ($0.02). Paycom Software had a net margin of 22.65% and a return on equity of 24.79%. The firm had revenue of $493.30 million during the quarter, compared to analysts’ expectations of $492.62 million. During the same period in the previous year, the firm earned $1.67 EPS. The firm’s revenue for the quarter was up 9.2% compared to the same quarter last year. Analysts forecast that Paycom Software, Inc. will post 7.15 EPS for the current year.

Paycom Software Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, December 8th. Investors of record on Monday, November 24th were issued a $0.375 dividend. This represents a $1.50 annualized dividend and a dividend yield of 1.0%. The ex-dividend date was Monday, November 24th. Paycom Software’s payout ratio is currently 18.66%.

Paycom Software Company Profile

Paycom Software, Inc (NYSE: PAYC) is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom’s software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company’s core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.